USD/JPY: value of put options (bearish bets) hits three-week high
|The USD/JPY one-month 25 delta risk reversals are currently trading at -1.25 in favor of put options (bearish bets). That is the lowest level since Oct. 30.
The negative number indicates the implied volatility premium for the cheap out of the money put options (bearish bets) is higher than that for calls.
The value of put options hitting three-week highs indicates the investors are likely expecting a deeper drop in the USD/JPY pair, which is currently trading at 112.74, having clocked a 17-day low of 112.61 earlier today.
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